The Bureau of Customs (BoC) has announced a temporary relief from duties for foreign vessels involved in the laying and repair of submarine cables. This decision, outlined in Customs Administrative Order No. 02-2026, provides a framework for the temporary admission of all foreign-owned and foreign-registered International Cable-Laying and Repair Vessels (ICLRVs).
These specialized vessels will be categorized as professional equipment, thereby granting them total conditional relief from import duties and taxes. The BoC issued this order to facilitate the efficient and timely execution of submarine cable-laying and repair projects, which are deemed critical to the national telecommunications and energy infrastructure.
To qualify for this exemption, the vessel must be owned and imported by a non-resident of the Philippines and must be used exclusively by or under the personal supervision of the visitor to the Philippines. The vessel should be declared as a conditional import and must be accompanied by a special permit from the Maritime Industry Authority, a charter agreement or service contract, proof of the vessel’s value, a commercial invoice, and a certificate of vessel registry, among other documents.
The order also provides clarity on the guidelines for authorized projects that span multiple customs jurisdictions. According to the order, the project authorization must specify the ports involved, the routing plan, the scope of work, and the estimated duration of the activities at each port.
The movement of the ICLRV between these specified ports will not necessitate the filing of a new import entry nor will it lead to the assessment of duties and taxes. However, any cable, pipe, or other material to be used for the approved project that does not form an integral and permanent part of the ICLRV will be subject to import requirements, including applicable duties and taxes, unless exempted by law.
